Fiscal Deal Would Do Little To Shrink U.S. Deficit

By

Damian Paletta

Updated Dec. 29, 2012 4:28 p.m. ET

WASHINGTON—The last-minute tax and spending deal being discussed in the Senate would do little to reduce the deficit, and could actually expand it, leaving difficult choices about Medicare, Social Security, and the country's borrowing limit until next year.

White House and congressional negotiators had originally envisioned a package of tax and spending changes that would reduce the deficit between $3 trillion and $4 trillion over 10...